Bottomline Technologies Reports Fourth Quarter Results
(Thomson Reuters ONE) -
Strong Growth in Subscription and Transaction Revenue Highlights Fourth Quarter
PORTSMOUTH, N.H., Aug. 10, 2017 (GLOBE NEWSWIRE) -- Bottomline Technologies
(NASDAQ:EPAY), a leading provider of financial technology which helps businesses
pay and get paid, today reported financial results for the fourth quarter and
fiscal year ended June 30, 2017.
Subscription and transaction revenues, which are primarily related to the
company's cloud platforms, were $59.4 million for the fourth quarter, up 17%, or
20% on a constant currency basis, as compared to the fourth quarter of last
year. Revenues overall for the fourth quarter were $93.5 million. Constant
currency growth is calculated as discussed in the "Non-GAAP Financial Measures"
section that follows.
GAAP net loss for the fourth quarter was $5.7 million compared to $5.9 million
for the fourth quarter of last year. GAAP net loss per share was $0.15 in the
fourth quarter compared to $0.16 in the fourth quarter of last year.
Adjusted EBITDA for the fourth quarter was $20.8 million compared to $18.0
million for the fourth quarter of last year. Adjusted EBITDA for the fourth
quarter was 22% of overall revenue compared to 20% of overall revenue for the
fourth quarter of last year. Adjusted EBITDA is calculated as discussed in the
"Non-GAAP Financial Measures" section that follows.
Core net income for the fourth quarter was $10.6 million compared to $9.2
million for the fourth quarter of last year. Core earnings per share was $0.28
for the fourth quarter compared to $0.24 for the fourth quarter of last year.
Core net income and core earnings per share exclude certain items as discussed
in the "Non-GAAP Financial Measures" section that follows.
"Our strong results confirm that we are executing well against our strategic
plan," said Rob Eberle, President and CEO of Bottomline Technologies. "The
fourth quarter was highlighted by strong subscription and transaction revenue
growth and represents another step forward towards achieving our longer term
financial goals. We enter the new fiscal year with market momentum and a product
set that is well positioned to drive our continued growth. We have confidence in
our ability to execute against our strategic plan, achieve our financial targets
and drive shareholder value."
Fourth Quarter Customer Highlights
* 18 leading institutions selected Paymode-X, Bottomline's leading cloud-based
payments automation platform.
* 7 leading organizations, including New Mexico Mutual and Confie Insurance
Services, chose Bottomline's cloud-based legal spend management solutions to
automate, manage and control their legal spend.
* Signed 5 new Digital Banking deals, helping banks to compete and grow their
corporate and business banking franchises by deploying innovative digital
capabilities.
* Companies such as Global Reach Group Ltd and Credit Agricole Indosuez
(Switzerland) SA selected Bottomline's Financial Messaging solution to
improve operating efficiencies and optimize the effectiveness of their
financial transactions.
* Organizations such as Medavie Blue Cross and Bessemer Trust chose
Bottomline's corporate payment automation solutions to extend their payments
capabilities and improve efficiencies.
Fourth Quarter Strategic Corporate Highlights
* Announced that the Paymode-X electronic payment network has grown to over
365,000 businesses in the network. Paymode-X processes more than $200
billion in annual spend. The scale of the network and large number of
enrolled vendors makes Paymode-X the clear choice for businesses seeking
payment automation and payables monetization.
* Announced that Citizens Bank selected Bottomline to deploy a market-leading
online and mobile banking platform for Citizens Commercial and Business
Banking clients. Bottomline was chosen for its breadth of capabilities as
well as its ability to manage complex fraud risks and keep business payments
secure. By deploying Bottomline's Digital Banking 3.0 platform, Citizens
will provide its clients with an integrated suite of cash management and
payment services that can be tailored by market or industry segment.
* Held the 2017 Legal Spend Management customer conference in Chicago, IL.
Known as the Customer Insights Exchange, the conference was attended by over
forty of North America's largest casualty and insurance companies. The three
day conference provided a unique forum for Bottomline's Legal Spend
Management customers to discuss industry developments, share best practices
and collaborate with the Bottomline Legal Solutions team.
* Announced the launch of a new payment fraud solution for members of the
SWIFT payment network. The solution is part of a package of measures being
offered by Bottomline to help customers meet security requirements from the
SWIFT payments cooperative under its recently announced Customer Security
Programme (CSP). Being made available to some of the world's largest banks
and financial institutions, the new Bottomline fraud solution goes beyond
the mandatory controls to include real-time monitoring of user behavior and
individual messages.
Non-GAAP Financial Measures
We have presented supplemental non-GAAP financial measures as part of this
earnings release. The presentation of this non-GAAP financial information should
not be considered in isolation from, or as a substitute for, our financial
results presented in accordance with GAAP. Core net income, core earnings per
share, constant currency information, adjusted EBITDA and adjusted EBITDA as a
percent of revenue are non-GAAP financial measures.
Core net income and core earnings per share exclude certain items, specifically
amortization of acquired intangible assets, goodwill impairment charges, stock-
based compensation, acquisition and integration-related expenses, restructuring
related costs, minimum pension liability adjustments, non-core charges
associated with our convertible notes and revolving credit facility, global
enterprise resource planning (ERP) system implementation costs, and other non-
core or non-recurring gains or losses that arise from time to time.
Non-core charges associated with our convertible notes and revolving credit
facility consist of the amortization of debt issuance and debt discount costs.
Acquisition and integration-related expenses include legal and professional fees
and other direct transaction costs associated with business and asset
acquisitions, costs associated with integrating acquired businesses, including
costs for transitional employees or services, integration related professional
services costs and other incremental charges we incur as a direct result of
acquisition and integration efforts. Global ERP system implementation costs
relate to direct and incremental costs incurred in connection with our
implementation of a new, global ERP solution and the related technology
infrastructure.
In computing diluted core earnings per share, we exclude the effect of shares
issuable under our convertible notes to the extent that any such dilution would
be offset by our note hedges; the note hedges would be considered an anti-
dilutive security under GAAP.
Periodically, such as in periods that include significant foreign currency
volatility, we present certain metrics on a "constant currency" basis, to show
the impact of period to period results normalized for the impact of foreign
currency rate changes. We calculate constant currency information by translating
prior period financial results using current period foreign exchange rates.
Adjusted EBITDA and adjusted EBITDA as a percent of revenue represent our GAAP
net income or loss, adjusted for charges related to interest expense, income
taxes, depreciation and amortization, and other charges, as noted in the
reconciliation that follows.
We believe that these supplemental non-GAAP financial measures are useful to
investors because they allow for an evaluation of the company with a focus on
the performance of its core operations, including more meaningful comparisons of
financial results to historical periods and to the financial results of less
acquisitive peer and competitor companies. Our executive management team uses
these same non-GAAP financial measures internally to assess the ongoing
performance of the company. Additionally, the same non-GAAP information is used
for planning purposes, including the preparation of operating budgets and in
communications with our board of directors with respect to our core financial
performance. Since this information is not a GAAP measurement of financial
performance, there are material limitations to its usefulness on a stand-alone
basis, including the lack of comparability of this presentation to the GAAP
financial results of other companies.
Reconciliation of Core Net Income
A reconciliation of core net income to GAAP net loss for the three and twelve
months ended June 30, 2017 and 2016 is as follows:
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------- --------------------------------
2017 2016 2017 2016
------------ ------------ ------------- ------------------
(in thousands)
GAAP net loss $ (5,659 ) $ (5,926 ) $ (33,137 ) $ (19,648 )
Amortization of
acquired intangible
assets 5,865 7,258 24,246 28,978
Goodwill impairment
and fixed asset
charges (1) 2,399 - 9,928 -
Stock-based
compensation expense 7,704 7,185 31,913 30,279
Acquisition and
integration-related
expenses 324 167 2,596 741
Restructuring
expense (benefit) (14 ) (72 ) 547 850
Global ERP system
implementation costs 2,131 2,433 8,804 4,252
Other non-core
benefit (223 ) (246 ) (223 ) (246 )
Minimum pension
liability
adjustments 274 63 1,079 203
Amortization of debt
issuance and debt
discount costs 3,649 3,319 14,067 12,958
Non-recurring tax
benefit (153 ) - (4,614 ) -
Tax effects on non-
GAAP income (5,674 ) (4,967 ) (17,530 ) (19,607 )
------------ ------------ ------------- ------------------
Core net income $ 10,623 $ 9,214 $ 37,676 $ 38,760
------------ ------------ ------------- ------------------
(1) Consists of a non-recurring fixed asset charge of $2.4 million and a
goodwill impairment charge of $7.5 million in the three months ended June
30, 2017 and December 31, 2016, respectively.
Reconciliation of Diluted Core Earnings per Share
A reconciliation of our diluted core earnings per share to our GAAP basic and
diluted net loss per share for the three and twelve months ended June 30, 2017
and 2016 is as follows:
Three Months Ended Twelve Months Ended
June 30, June 30,
----------------------- ----------------------
2017 2016 2017 2016
----------- ----------- ----------- ----------
GAAP basic and diluted net loss
per share $ (0.15 ) $ (0.16 ) $ (0.88 ) $ (0.52 )
Plus:
Impact on GAAP diluted net loss
per share of weighted average
shares used in computing core
earnings per share - 0.01 0.01 0.01
Amortization of acquired
intangible assets 0.15 0.19 0.64 0.75
Goodwill impairment and fixed
asset charges 0.06 - 0.26 -
Stock-based compensation expense 0.20 0.19 0.84 0.79
Acquisition and integration-
related expenses 0.01 - 0.07 0.02
Restructuring expense (benefit) - - 0.01 0.02
Global ERP system implementation
costs 0.06 0.06 0.23 0.11
Other non-core benefit (0.01 ) (0.01 ) (0.01 ) (0.01 )
Minimum pension liability
adjustments 0.01 - 0.03 0.01
Amortization of debt issuance
and debt discount costs 0.10 0.09 0.37 0.34
Non-recurring tax benefit - - (0.12 ) -
Tax effects on non-GAAP income (0.15 ) (0.13 ) (0.46 ) (0.51 )
----------- ----------- ----------- ----------
Diluted core earnings per share $ 0.28 $ 0.24 $ 0.99 $ 1.01
----------- ----------- ----------- ----------
A reconciliation of our non-GAAP weighted average shares used in computing
diluted core earnings per share to our GAAP weighted average shares used in
computing basic and diluted net loss per share for the three and twelve months
ended June 30, 2017 and 2016 is as follows:
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------ ------------------------
2017 2016 2017 2016
------------ ----------- ------------ -----------
Numerator:
Core net income $ 10,623 $ 9,214 $ 37,676 $ 38,760
------------ ----------- ------------ -----------
Denominator:
Weighted average shares used
in computing basic and
diluted net loss per share
for GAAP 37,693 37,949 37,842 37,957
Impact of dilutive securities
(stock options, restricted
stock awards and employee
stock purchase plan) (2) 337 363 224 505
------------ ----------- ------------ -----------
Weighted average shares used
in computing diluted core
earnings per share 38,030 38,312 38,066 38,462
------------ ----------- ------------ -----------
(2) These securities are anti-dilutive on a GAAP basis as a result of our net
loss, but are considered dilutive on a non-GAAP basis in periods where we
report non-GAAP net income.
Constant Currency Reconciliation
The table below is a comparative summary of our total revenues and our
subscription and transaction revenues shown with a constant currency growth
rate:
Three Months Ended
June 30,
---------------------------
% Increase
Impact
from Constant
2017 2016 GAAP Currency Rates (3)
------------- ------------- ------ ------------ -------------
(in thousands)
Subscription and
Transaction
Revenues $ 59,370 $ 50,870 17 % 3 % 20 %
Total Revenues 93,501 88,112 6 % 3 % 9 %
Twelve Months Ended
June 30,
---------------------------
%
Increase
Impact
from Constant
2017 2016 GAAP Currency Rates (3)
------------- ------------- ------ ------------ -------------
(in thousands)
Subscription and
Transaction
Revenues $ 222,997 $ 195,187 14 % 4 % 18 %
Total Revenues 349,412 343,274 2 % 4 % 6 %
(3) Constant currency information compares results between periods as if
exchange rates had remained constant period-over-period. We calculate constant
currency information by translating prior-period results using current period
GAAP foreign exchange rates.
Reconciliation of Adjusted EBITDA
A reconciliation of our adjusted EBITDA to GAAP net loss for the three and
twelve months ended June 30, 2017 and 2016 is as follows:
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------- --------------------------
2017 2016 2017 2016
------------ ------------ ------------- ------------
GAAP net loss $ (5,659 ) $ (5,926 ) $ (33,137 ) $ (19,648 )
Adjustments:
Other expense, net 4,490 3,903 17,086 15,312
Provision for (benefit
from) income taxes (1,108 ) (461 ) (5,137 ) 785
Depreciation and
amortization 6,603 3,700 19,528 13,489
Amortization of acquired
intangible assets 5,865 7,258 24,246 28,978
Goodwill impairment charge - - 7,529 -
Stock-based compensation
expense 7,704 7,185 31,913 30,279
Acquisition and
integration-related
expenses 324 167 2,596 741
Restructuring expense
(benefit) (14 ) (72 ) 547 850
Minimum pension liability
adjustments 274 63 1,079 203
Global ERP system
implementation costs 2,131 2,433 8,804 4,252
Other non-core expense
(benefit) 189 (246 ) 189 (246 )
------------ ------------ ------------- ------------
Adjusted EBITDA $ 20,799 $ 18,004 $ 75,243 $ 74,995
------------ ------------ ------------- ------------
Adjusted EBITDA as a percent of Revenue
A reconciliation of adjusted EBITDA as a percent of revenue to GAAP net loss as
a percent of revenue for the three and twelve months ended June 30, 2017 and
2016 is as follows:
Three Months Twelve Months
Ended Ended
June 30, June 30,
--------------- --------------
2017 2016 2017 2016
------- ------- ------- ------
GAAP net loss as a percent of revenue (6 %) (7 %) (9 %) (6 %)
Adjustments:
Other expense, net 5 % 4 % 5 % 4 %
Provision for (benefit from) income taxes (1 %) (1 %) (1 %) 0 %
Depreciation and amortization 7 % 4 % 6 % 4 %
Amortization of acquired intangible assets 6 % 8 % 7 % 9 %
Goodwill impairment charge 0 % 0 % 2 % 0 %
Stock-based compensation expense 9 % 9 % 8 % 10 %
Acquisition and integration-related expenses 0 % 0 % 1 % 0 %
Restructuring expense (benefit) 0 % 0 % 0 % 0 %
Minimum pension liability adjustments 0 % 0 % 0 % 0 %
Global ERP system implementation costs 2 % 3 % 3 % 1 %
Other non-core expense (benefit) 0 % 0 % 0 % 0 %
------- ------- ------- ------
Adjusted EBITDA as a percent of revenue 22 % 20 % 22 % 22 %
------- ------- ------- ------
About Bottomline Technologies
Bottomline Technologies (NASDAQ:EPAY) helps make complex business payments
simple, smart and secure by providing a trusted and easy-to-use set of cloud-
based business payment, digital banking, fraud prevention and financial document
solutions. Over 10,000 corporations, financial institutions, and banks benefit
from Bottomline solutions. Headquartered in the United States, Bottomline also
maintains offices in Europe and Asia-Pacific. For more information, visit our
website at www.bottomline.com.
Bottomline Technologies, Paymode-X and the BT logo are trademarks of Bottomline
Technologies (de), Inc. which are registered in certain jurisdictions. All other
brand/product names are trademarks of their respective holders.
In connection with this earnings release and our associated conference call, we
will be posting additional material financial information (such as financial
results, non-GAAP financial projections and non-GAAP to GAAP reconciliations)
within the "Investors" section of our website
at www.bottomline.com/us/about/investors.
Cautionary Language
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
reflecting our expectations about our ability to execute on our strategic plans,
achieve future growth and profitability, expand margins and increase shareholder
value. Any statements that are not statements of historical fact (including but
not limited to statements containing the words "believes," "plans,"
"anticipates," "expects," "look forward", "confident", "estimates" and similar
expressions) should be considered to be forward-looking statements. Actual
results may differ materially from those indicated by such forward-looking
statements as a result of various important factors including, among others,
competition, market demand, technological change, strategic relationships,
recent acquisitions, international operations and general economic conditions.
For additional discussion of factors that could impact Bottomline Technologies'
operational and financial results, refer to our Form 10-K for the fiscal year
ended June 30, 2016 and the subsequently filed Form 10-Qs and Form 8-Ks or
amendments thereto. Any forward-looking statements represent our views only as
of today and should not be relied upon as representing our views as of any
subsequent date. We do not assume any obligation to update any forward-looking
statements.
Bottomline Technologies
Unaudited Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------- --------------------------
2017 2016 2017 2016
------------ ------------ ------------- ------------
Revenues:
Subscriptions and
transactions $ 59,370 $ 50,870 $ 222,997 $ 195,187
Software licenses 3,337 5,072 11,685 20,826
Service and maintenance 29,696 30,495 109,633 120,292
Other 1,098 1,675 5,097 6,969
------------ ------------ ------------- ------------
Total revenues 93,501 88,112 349,412 343,274
Cost of revenues:
Subscriptions and
transactions 29,242 23,207 103,777 87,775
Software licenses 229 289 818 1,030
Service and maintenance 14,186 13,691 53,494 53,236
Other 846 1,252 3,737 5,059
------------ ------------ ------------- ------------
Total cost of revenues 44,503 38,439 161,826 147,100
------------ ------------ ------------- ------------
Gross profit 48,998 49,673 187,586 196,174
Operating expenses:
Sales and marketing 20,294 21,214 77,470 84,068
Product development and
engineering 13,928 12,396 53,002 47,355
General and administrative 11,188 11,289 46,527 39,324
Amortization of intangible
assets 5,865 7,258 24,246 28,978
Goodwill impairment charge - - 7,529 -
------------ ------------ ------------- ------------
Total operating expenses 51,275 52,157 208,774 199,725
------------ ------------ ------------- ------------
Loss from operations (2,277 ) (2,484 ) (21,188 ) (3,551 )
Other expense, net (4,490 ) (3,903 ) (17,086 ) (15,312 )
------------ ------------ ------------- ------------
Loss before income taxes (6,767 ) (6,387 ) (38,274 ) (18,863 )
Income tax provision
(benefit) (1,108 ) (461 ) (5,137 ) 785
------------ ------------ ------------- ------------
Net loss $ (5,659 ) $ (5,926 ) $ (33,137 ) $ (19,648 )
Basic and diluted net loss
per share: $ (0.15 ) $ (0.16 ) $ (0.88 ) $ (0.52 )
------------ ------------ ------------- ------------
Shares used in computing
basic and diluted net loss
per share: 37,693 37,949 37,842 37,957
------------ ------------ ------------- ------------
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, June 30,
------------- ------------
2017 2016
------------- ------------
ASSETS
Current assets:
Cash, cash equivalents and marketable securities
$ 126,542 $ 132,383
Accounts receivable 64,244 61,773
Other current assets 16,807 22,385
------------- ------------
Total current assets 207,593 216,541
Property and equipment, net 55,307 51,029
Goodwill and intangible assets, net 336,868 366,958
Other assets 17,671 16,682
------------- ------------
Total assets $ 617,439 $ 651,210
------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,013 $ 10,218
Accrued expenses 29,179 27,512
Deferred revenue 74,113 74,332
Convertible senior notes 183,682 -
------------- ------------
Total current liabilities 295,987 112,062
Convertible senior notes - 169,857
Deferred revenue, non current 22,047 19,086
Deferred income taxes 15,433 28,147
Other liabilities 22,016 27,271
------------- ------------
Total liabilities 355,483 356,423
Stockholders' equity
Common stock 43 42
Additional paid-in-capital 624,001 591,800
Accumulated other comprehensive loss (32,325 ) (37,668 )
Treasury stock (113,071 ) (75,832 )
Accumulated deficit (216,692 ) (183,555 )
------------- ------------
Total stockholders' equity 261,956 294,787
------------- ------------
Total liabilities and stockholders' equity $ 617,439 $ 651,210
------------- ------------
Media Contact:
Rick Booth
Bottomline Technologies
603-501-6270
rbooth(at)bottomline.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bottomline Technologies, Inc. via GlobeNewswire
Datum: 10.08.2017 - 22:05 Uhr
Sprache: Deutsch
News-ID 556191
Anzahl Zeichen: 34763
contact information:
Town:
Portsmouth, NH
Kategorie:
Business News
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